A Report on Enterprise/ERP Systems and Its

Connection to Digital Process Automation

ITECH 5402 Enterprise Systems

Submitted by:
Sagar Parajuli 30381175
 Table of Contents
Table of Figures.........................................................................................................2

Abstract......................................................................................................................3

Introduction...............................................................................................................4

ERP and Digital Process Automation....................................................................6

Background................................................................................................................8

Case Study...............................................................................................................10

Case Study on LG Electronics.............................................................................10

A Case Study of ERP on Small Business............................................................12

Discussion and implications of Case Study.............................................................15

Result and Findings.................................................................................................17

Conclusion...............................................................................................................18

References...............................................................................................................19

Appendices I............................................................................................................21
 Table of Figures

Figure 1 Uses of ERP on Different Areas.................................................................5

Figure 2 LG Corporation Organizational Structure.................................................10

 Abstract

Information System such as Enterprise Resource Planning in an organization helps

in proper management of information and data for better decision making and
better service to their customers. It helps in identifying problem and, their solution
and helps to make future plans. This approach is entirely different way the
traditional way of managing the organization. The way of working impact the way
the organization will move on. So, it is very important to take the organization to a
positive pathway toward profitability and growth.

Every big or small organization can implement ERP system in their organization;
however, this process is little bit costly but also a great investment for a business
development. Implementation of ERP System requires proper planning and
research before implementing. ERP helps to create an automatic working eco
system which provide better service to their employees and client.
 Introduction

Enterprise resource planning is a business process management software which is

used in an organization to manage the day to day work of the organization. ERP
software typically performs operations like planning, sales, finding problems, their
solutions into a single storage system for better management and control. ERP
software or applications are referred as enterprise application. (Oracle, 2019)

According to the APICS, Enterprise Resource Planning (ERP) is a: framework for

organizing, defining, and standardizing the business processes necessary to
effectively plan and control an organization so the organization can use its internal
knowledge to seek external advantage.

Some of the ERP software's are ECI M1, MYOB Advanced, Sync Pilot ERP etc.

The main aim of using ERP systems is to make the transmission of information
and data flow dynamic which helps to increase efficiency and usefulness of the
information present in the organization.

Some of the key benefits of use ERP are:

 Overall Visibility of Organization

 Better Planning and Reporting
 Increase Efficiency of the day to day work
 Information quality and increased security
 Improved workflow and collaboration
 Figure 1 Uses of ERP on Different Areas

Digital Process automation is and approach or technique of automating those

repetitive tasks to make the customers as well as employee experience better. This
generally helps to provide better, faster, and efficient service to the users. It helps
to perform the work in a much faster way. In business, it helps to make the
workflow in an efficient manner without waiting for requested information. Digital
process automation helps in increasing efficiency of the system. The main aim of
the automation approach is to create a service which is manage and controlled
automatically. There is huge amount of data available in an organization if that
information is utilized then a better approach of processing can be found. This
helps in providing facilities to their client in a faster way. In case of huge amount
of data, if we are able to process those data automatically then this will help in
expansion of organizational facilities to all the user of the system. For example,
when a user wants to buy some items from the company’s website then it is easier
to use the website then the client will interact with the site more. The better the
website content is then better the possibility that the client will buy some item form
the site. Also is the client could get direct customer support from the system
through AI chat bots then it will help the client to solve the raised problem. It will
create a positive impact to the client and the problem is solved without requirement
of a real human. The organization will then require fewer manpower.

ERP and Digital Process Automation

ERP in Digital process Automation helps in:

 Better Service to the customers and users

 Saving Cost
 Increase accuracy
 More Processing Speed
 Saving time
 Increase efficiency

An Automatic process just like its name work automatically like human. As this is
an automatic process we don't need to start or end the process manually. In an
organization, there is huge amount of day to day work conducted in daily basis.
Using an ERP software for automatic processing will help to increase the
workflow of the organization. It helps the employees to have better understanding
of the information and have faster decision taking abilities. It will save time for
providing the services to their client which is a key element for maintaining good
relations with the customers.

ERP Solutions are divided based on deployment methods:

 Cloud or software as a service (SaaS) example: NetSuite ERP and SAP

Business
 Hybrid ERP example: Epicor ERP
 On-premise example: Dynamics AX, SAP, Oracle.
 Background

The implementation of ERP system is a complex procedure in an IT world. It cost

highly requires skill manpower and requires advanced hardware devices. Due to
the complex nature of ERP application, many times a project ha encounter a
failure.

Traditional ERP Systems were preciously used in many companies where the
system was not automated, and all the information were stored in the server of the
company itself. It was maintained and controlled by the IT department of the own
company. One advantage of these system is that they are secure but having an open
cloud storage provides a borderless facility to the users. About few decade ago,
that information was all keeps in physical books and files manually. This make the
information managing approach time taking. There was no automatic analysis of
problems and we were not able to do task like bid data analysis which helps in
identifying problems and find their solutions and helps in future decision taking.
(Perkins, 2020)

Common Feature of Enterprise Resource Planning:

 Accounting
 Human Resource
 Manufacturing
 CRM
 Inventory Management

So, what is Enterprise Resource Planning and Digital Process Automation?

An ERP system Automation is a technique of using advance form of software to
automate the daily business process and store the information in a centralized
location which is then used for decision making, future planning and providing
faster service to customers. ERP software are integrated application consisting sale
management, financial management, resources management etc. (Team, 2018)

Digital Process Automation means the use of digital technology to performs a

function using a series of small or big process.

According to Forrester, 73 percent of consumers say that valuing their time is the
most important thing a company can do to provide good service. (Leggett, 2020)

The above statement shows that, an organization must focus on providing their
service in a faster way. This helps in keeping the relation with the customers good.
So, the best way of saving time is the using of our software for automatic data
processing in which the customers will interact less with the system and get their
desired result faster.
 Case Study

Case Study on LG Electronics

LG corporation /Electronics is a Korean company named lucky Goldstar. It was

founded in 5 January 1947.Koo In-hwoi was the founder of LG corporation is a big
multinational company which products includes chemicals, Electronics, and
telecommunications. This company has a huge number of customers worldwide.
(ERP, 2018)

Figure 2 LG Corporation Organizational Structure

LG has its branches in more than 40 countries and millions of customers as well as
employees. Due to such a vast business, it encounters a lot of problems like:

 Lack of process transparency and no automation reporting.

 Lack of clear location-based reporting and resources utilization.
 No proper communication better employees located in different levels and
locations.
 Difficulties in identifying problems and decision making.
 To solve has problems and to provide better facilities and functionality to the
people they create a solution along with oracle. It They build a centralized
control system for large data hosting, sharing information and better
management of their information.

The advantage of using such an application gives huge benefits for the
company:

 A centralized system to mage the information with minimal cost.

 More transparency in management of employees like hiring, awarding,
hiring and their performance.
 Saving cost and increasing efficiency.
 Increase productivity, engagement, and management.
 Integration, Flexibility, Automation etc.

LG Electronics used the software application from oracle for many years in its
Seoul head office. This helps in managing the information and data of the
organization in a central repository. Later they implement the Oracle E-Business
Suite Release 12 software in other six location worldwide. By, 2010 they
implement the ERP system to their worldwide location.SO they implement the
system based on location stepwise. This helps to prevent any failure of the ERP
system. It took them 4 year to implement the ERP system from 2002 to 2006.In
this way, LG Electronics was able to develop its policies and HR practices by
using the ERP solution developed by Oracle. They are still using the upgraded
version of the system to make innovation. (Alokjasmatiya99, 2018)
A Case Study of ERP on Small Business

Not only for big multinational organization but also small organization can take the
advantages from ERP and automation process.

This Case study in based on a small firm located in United States. The firm was
searching for a simple and affordable way of implementing Open Source Software
Enterprise Resource Planning (OSS ERP). Weld Engineering Technology
Incorporation was a small company which wants to expand their business in larger
area. However, with the traditional approach it was not possible. So, they use ERP
System from Open sources and implemented into their central system to manage
all their work. This helps in better data analysis and increase the daily work
through automatic processing of the queries and information. (Choong Kwon Lee,
2008)

The way of implementing new system is very complex so the WETI company
Implemented the system into phases.

In first phase they did proper research of the market and all the old data available.
Thy analysis and prepare design about implementing the Software system.

In the Second phase they implemented a smaller version of the software and started
to make it the centralize database. They analysis the performance and growth of
the organization business.

In the final phase they upgrade the application and make it fully centralize. All the
data and information of the organization were managed and control by the
organization, this make the day to day working of the organization better, smooth,
and highly efficient.
In a real-life scenario ERP implementation is done in 5 main steps:

1. Get Approval
A business case document is required for the approval of ERP
implementation. This document includes information regarding problems,
description, solutions, cost, benefits and more.
2. Planning the Program
A work plan is developed by building a team member and planning the
upgrades in the current systems.
3. Software Configuration
It is the most important and difficult phase of ERP implementation in an
organization. It includes programming, migrating data, testing the
functionality of the system, Upgrading etc.
4. Deploy the System
Once the system is function as it should be and passes all the test then it is
deployed. The staff is trained, and proper plan are developed for support
5. Stabilize the System
Implementation of new approach will let the organization to experience
some change is performance will take some time for all the customers and
employees to become familiar with the new system.

After few months of implementation, the ERP automation system was ready
to extend to more area. This was a great example of open source ERP system
which are simple to integrate expensive yet very powerful to control and
manage the information and queries. The system of WETI which was called
xTuple was very simple and easy to use and provides free SQL query feature
and reports on sales quotes, work orders, purchases query, accounting
information and many more. The main advantage from this approach was
that the overall expenses of the implementation process was reduced by
more than 40 percentage. But the negative impact of using open source
software but also be kept in mind by the developer team. The main aim is to
build a good ERP system which can help to grow the business network.
 Discussion and implications of Case Study

Not only for LG, but also every huge or small organization required a ERP for
better management of the organization. When process become automated then the
overall work become faster and better. The use of ERP in LG company was an
example of a successful ERP implementation which is not always the case. Due to
this some organization like WETI implement those systems in multiple steps. This
make it easier and if any possible failure occurs, they could revert back to the
original state.

It is obvious that implementing ERP is risky and costly, but it helps in growing the
business. For an instance, the ERP software developed and managed by Oracle
helps in centralizing the information of the LG Corporation in a more systematic
way. This helps the organization to deliver better services to their client by the
process automation. Process Automation was the key reason for both the
organization to implementing ERP system. This will help to make the system
robust and better processing to data in short period of time.

In both the case study I have selected, each organization knows the risk of ERP
implementation. That is why they have made proper planning and implemented the
system in a stepwise pattern. Despite of high level of precaution there is always
chance of failure when we implement new updated in our system. That is why re-
engineering or reverse engineering is also a great approach to keep in the mind.
This will help the organization to take care of the data if any problem arises. Also,
it is very difficult for the new users to become familiar with the system.IN case of
LG electronics, they first test the system in their Seoul office by providing proper
training by the oracle company. Later after success testing and training, the system
was implemented in other branches of LG Company.

In case of small organization like WETI they use the open sources to reduce the
total implementation cost of the system. However, open source software may not
always provide full facilities to the developer, this must be kept in mind while
developing the system by the developer. There is always more risk in use such
open source applications in such a complex system development.
 Result and Findings

From the case study we have found out that this is the age of the technology, big
data, and information. ERP is the bridge of all of it. This helps to combine the
technology for doing the daily work of any organization. Big Organization like LG
Corporation and small Companies like WETI has implemented ERP as the main
tool for managing their information. They have got the best use of the technology
with better performance and higher efficiency. These approaches have helped these
organization to grow their size and customers. All thanks to ERP Automatic
system approach.

LG in combination with oracle create a global centralize system which was one of
the key aspects for LG for growth and development. Similarly, for WETI, the
stepwise implementation of ERP automation helps them to extend their service in
United States. Such a stepwise break down helped the company to make proper
plan and study before implementing. This will help to prevent any possible failure.
This was a really good idea to implement large systems.

At last, both the company I selected for my case study were able to successful to
implement the ERP automation system which helps them to grow their business in
wide variety of area around the world. This shows how important is ERP for big
and small organizations. Both organization were able to grow and build new
branches in different location and were able to manage the information by creating
a centralized database system from where both the employees and their client were
able to get the best facilities from the organization.
 Conclusion

There is no doubt that ERP is growing and helps to grow the organization.
However, the implementation procedure of Enterprise Resource planning depends
on the type of organization and the implementation process. The use of Automatic
processing will have both positive and negative impact to the world. It will help to
grow the organization but also will result in loss of jobs in big companies.

In conclusion, ERP is now a vital part of every big or small organization. IT helps
the organization for managing information and proper decision making. ERP are
large and complex element of Information System. With digital automatic
processing we can delivered better service to the clients and employee.

However, skillful manpower and proper research us very important before

implementing and ERP Automation system. In most of the cases, they are
implemented by dividing into multiple phases. This helps to control any possible
failure which the system may encounter. Also, it will be easier to revert back to
original state in case we encounter any problem. This will make it safe and will not
affect the data presented in another location.
 References

Alokjasmatiya99. (2018, September). LG electronics case study erp

implementation. Retrieved from College ERP:
http://collegeerp14.zohosites.com/blogs/post/LG-case-study

Choong Kwon Lee, H.-H. L. (2008, July). Successful implementation of ERP.

Retrieved from Springer: https://link.springer.com/article/10.1007/s11628-
008-0045-3

ERP, T. 1. (2018, July). LG Electronics Improves HR Management by

Consolidating on a Single Global HRMS. Retrieved from Top 10 ERP:
https://www.top10erp.org/oracle-e-business-suite-lg-electronics-case-
studies-22

Leggett, K. (2020, March). Smart Manufacturing. Retrieved from Forrester:

https://go.forrester.com/blogs/16-03-03-
your_customers_dont_want_to_call_you_for_support/

Oracle. (2019, January). What Is ERP. Retrieved from Oracle Australia:

https://www.oracle.com/au/applications/erp/what-is-erp.html

Perkins, B. (2020, April). Key features of top enterprise resource planning

systems. Retrieved from CIO: https://www.cio.com/article/2439502/what-is-
erp-key-features-of-top-enterprise-resource-planning-systems.html

Team, T. (2018, August ). What is ERP Automation. Retrieved from Technology

Evaluation Centre:
https://www3.technologyevaluation.com/research/article/understanding-erp-
automation-benefits-and-emerging-technologies.html
 Appendices I

Sagar Parajuli (30381175)

Enterprise Resource Planning is a business process which uses a system to

integrates application to manage, control and automate the day to day work of the
organization. It is a business controlling and managing tool which is used to
collect, store, process, manage and control the information. The use of ERP helps
in development of an organization. I spend hours in the case study of LG
electronics. I can know that the new ERP application has given lots of benefits. It
shows that the Application Software helps in better decision making.

From small to large organization every organization in present time have lots of
advantage of ERP system. However, proper planning and analysis is very
important. That is why LG company implement the ERP automation system into
multiple phases. The company analyze the implementation for few months and
then implement the system in other location. This helps to protect the information
from any information failure.

From this report I become familiar with a variety of ERP system like NetSuite
ERP, SAP ERP and Sage ERP. The pricing for these application starts from more
than thousand dollars per year. It is obvious that ERP applications are quite
expensive and risky in the beginning. But it has great advantage in future. It will
help the organization in managing and controlling the information of the company.

ERP offers a standardization of common process of the organization.

From this report, I came to know that ERP system implementation can have
negative impact too. ERP is a very expensive approach and very complex system.
Re-Engineering of the business process is needed before ERP system is
implemented in the organization. In the lack of proper research, big projects have
failed during ERP automation implementation.

Process Automation is one of the features of ERP system. In business process

management, Digital process automation is a technique of optimizing the daily
process of the organization.

In an organization there are lots of work which is conducted daily so in such

scenario if we became able to make those process automatic, then it will help the
customers for better interaction with the system. It will also help the employee to
manage the organization. In higher level, Digital process automation helps in
processing the data hence helping in proper decision making and planning.

I check many online sites regarding ERP Applications, in many of the blogs it
mainly shows the positive side of the implementation of ERP. It shows that ERP is
expensive but also a great investment from business perspective. It is a futuristic
investment in the organization which will help the organization to grow and
provides facilities and security to the employee and provide better services to the
customers. This helps to make strong bonding between organization and the
customers. From small to large organization every department of the organization
requires to process huge amount of data. ERP helps to create a centralize database
which helps in better management of the data presented.